Celsius, the collapsed crypto lending platform, has filed an appeal against a recent court decision that disallowed its $444 million claim against the defunct crypto exchange FTX. The claim was part of Celsius’ ongoing efforts to recover funds amid its bankruptcy proceedings.

Initially, Celsius demanded $2 billion in damages, alleging that “disparaging statements” by FTX executives hastened its downfall. Later, the claim was revised to $444 million, focusing on “preferential transfers” that allegedly favored certain creditors over others. However, Judge John T. Dorsey dismissed the claims, citing insufficient evidence and procedural flaws. Specifically, the court found Celsius’ original filings lacked the necessary detail to support such claims.

On December 31, Mohsin Meghji, Celsius Network’s litigation administrator, formally appealed the decision, maintaining that the original filings were sufficient to preserve their right to seek these damages.

Celsius’ claim history is contentious. The platform initially accused FTX officers of making baseless negative statements about its financial health. It later amended its filing to demand the return of $444 million in transfers to FTX, asserting these funds should benefit its bankruptcy estate. The court, however, ruled that the amendments were unrelated to the original claim, lacked proper authorization, and risked delaying FTX’s reorganization.

Amid its bankruptcy, Celsius has repaid over $2.5 billion to 250,000 creditors, recovering 84% of owed assets. In November, the platform announced plans to distribute an additional $127 million. Despite this progress, Celsius’ native token (CEL) remains in turmoil, plummeting 97.5% from its all-time high after a brief surge.

Celsius’ battle to recover funds continues, as its appeal could redefine its role in one of crypto’s most significant bankruptcy cases.